Electronic bartering system

ABSTRACT

A bartering system implements barters between a plurality of parties each having one or more classes of items available for barter. Preferably, barter orders are created by designating a selected quantity of a first class of items to be bartered, designating a date range for transferring title of the first class items to be bartered, designating a barter value of the first class of items to be bartered, and designating a second class of items to be acquired. Barter orders are posted via the Internet to a barter database and may be displayed via the Internet. Posted barter orders whose first class of items match the second class of items of a barterer&#39;s order are preferably displayed. Posted barter orders from the display are selected to effectuate a barter transaction which combines a barterer&#39;s barter order with the selected posted order(s).

RELATED APPLICATIONS

This is divisional of co-pending application Ser. No. 09/454,035, filedDec. 3, 1999.

This application claims priority from U.S. Provisional PatentApplication No. 60/161,318, filed Oct. 25, 1999; U.S. Provisional PatentApplication No. 60/153,142, filed Sep. 9, 1999; and from U.S.Provisional Patent Application No. 60/147,243, filed Aug. 5, 1999.

BACKGROUND

This invention relates to a computer-based website for bartering,exchanging or selling, (hereinafter referred to as bartering), items orsecurities including but not limited to, stock, cash (foreign ordomestic currencies), web barter dollars (defined below), HimmelsteinOptions (defined below), CD's, bonds, notes, Option Put, Option Call,Commodities/Futures, Annuities, Muni Bond(s), Government Bonds, Funds,Strips (Zero Coupon Treasuries), Ginnie Mae(s), Fannie Mae(s), FreddieMac(s), UIT (Unit Investment Trust), T-bills and any future created ordefined security, commodity or commodity money wherein a barter orderindicating the item to barter and the desired barter item are matched bythe website. Barter transactions are made which combine a barterer'sbarter order with a matching order or combination of orders which thebarterer selects or the barterer has automatically selected by thewebsite. All barter transactions incorporate agreements. Agreements,termed Himmelstein Options, permit barterers to agree to a future rangeof dates: a date after the barter transaction may occur and a datebefore the barter transaction must occur or the rights of ownership mayexpire. Himmelstein options also include other conditions or parametersin the agreement as well.

Automated computer systems matching buy and sell orders for tradingstocks, futures and other properties are well known in the art. Anexample of such a system is disclosed in U.S. Pat. No. 3,573,747 toAdams, et al., which discloses a system for matching buy and sell ordersfor fungible properties between traders. After the initial match, oneembodiment of this system allows traders to negotiate other terms of thetransaction while all traders are continuously appraised of thenegotiation status. The system disclosed in U.S. Pat. No. 4,412,287 toBraddock relates to trading stock and discloses a central computer thatmatches buy and sell orders from a plurality of user terminals. In U.S.Pat. No. 5,689,652 to Lupien, et al. a computer network with a pluralityof trader terminals matches buy and sell orders incorporating asatisfaction density profile. The density profile provides a measure formaximizing the mutual satisfaction of all traders.

Computer systems to match bids and offers are also well known in theart. The system disclosed in U.S. Pat. No. 4,903,201 to Wagner matchesbids and offers for future commodity contracts and detects illegal tradepractices. U.S. Pat. No. 5,727,165 to Ordish, et al., discloses anetwork system and further provides confirmation timing and notificationmessaging to the traders. In U.S. Pat. No. 5,924,082 to Silverman, etal., a negotiated matching system matches bids and offers based on acriteria that includes “ranking” data. The ranking data is comprised ofcredit and risk information to facilitate the best matches with respectto risk management. Another aspect of this same system permits tradersto negotiate directly with each other prior to or after an initial matchis made by the system. The system of U.S. Pat. No. 5,926,801 toMatsubara et al. also matches bids and offers, and in one embodiment,credit criteria is considered in the match.

Another computer system disclosed in U.S. Pat. No. 5,873,071 toFerstenberg, et al. includes an intermediary computer program and anelectronic agent computer program which can operate over the Internet.The intermediary computer program mediates offers and counter-offers forfinancial commodities. Goals, expressed as either a set of computerrules or as an objective with constraints, are set by the participantsand the electronic agent computer program generates counter-offersaccording to the goals in response to offers from the intermediarycomputer program. In one embodiment of the system, a calculated“fairness measure” is used to determine satisfaction of the participantsgoals.

None of these patents address a bartering, exchanging or selling systemwhereby an individual trader constructs a barter order by establishingtrading parameters that include an item to be bartered and a desireditem to be received. Accordingly, none of these systems characterizepotential barter exchanges in a quantifiable manner for the individualtrader. The known electronic systems also fail to provide a means forassisting traders in the selection of trading items from that trader'sportfolio of financial instruments.

SUMMARY

It is an object of this invention to provide an electronic barteringsystem for bartering items or securities including but not limited to,stock, cash (foreign or domestic currencies), web barter dollars,Himmelstein Options, CD's, bonds, notes, Option Put, Option Call,Commodities/Futures, Annuities, Muni Bond(s), Government Bonds, Funds,Strips (Zero Coupon Treasuries), Ginnie Mae(s), Fannie Mae(s), FreddieMac(s), UIT (Unit Investment Trust), T-bills and any future created ordefined security, commodity or commodity money. A Himmelstein Option isan agreement to barter items or securities with specific conditions fora settlement date (i.e. rights to acquire) to occur after a specifieddate and before a specified date. These dates may be the same. Thebefore date may be indefinite. Himmelstein's Options (i.e. the portionof the barter transaction that is to be acquired) may be sold for cashor bartered (i.e. assign their rights or transfer their rights for adifferent security). In other words, the Himmelstein Option agreement,once acquired may be assigned without the written consent of theissuer/creator. This means that acquirer may transfer his rights toacquire the security or other item which is the subject of a HimmelsteinOption to someone else.

The user, termed the barterer, creates a barter order that is postedand/or matched against a website database of other posted barter orders.To implement a barter, the barterer selects a posted barter order from adisplay of matching barter orders. Barter orders include minimumcriteria such as an identification of items to be bartered, anidentification of items desired, market value of the items to bebartered and value determined by the barterer. Criteria such as theHimmelstein Option having barter date ranges (i.e. date upon which theactual ownership of the barter items changes hands) and value ranges addto the flexibility of the system. The flexibility in timing utilizingthe Himmelstein Option facilitates the ability to potentially deferadverse tax consequences and to defer the creation of taxable events.

It is an object of this invention to provide a barterer with asystematic means for evaluating the financial benefit of potentialmatching candidate barter orders.

Another object of this invention is to provide a barterer with a meansof selecting an item to be bartered from a current investment portfolioof the barterer.

It is another object of this invention to provide a flexible bartersystem which allows ownership acquisition deferral and the matching ofmulti-order barter transactions. Other, objects and advantages willbecome apparent after reviewing a detailed description of a presentlypreferred embodiment of the invention.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a diagram of a bartering system in accordance with theteachings of the present invention.

FIG. 2 is a schematic diagram of the structure of an example barterdatabase and barter order in accordance with the teachings of thepresent invention.

FIG. 3 is a schematic diagram of a multi-order barter transaction inaccordance with the teachings of the present invention.

FIGS. 4A–4E are flowcharts of a typical barter ordering session andbarter transaction in accordance with the teachings of the presentinvention.

FIGS. 5A–5F are portions of screen displays illustrating the creation ofa sample barter order in accordance with the teachings of the presentinvention.

FIG. 6 is an example of a barter transaction screen in accordance withthe teachings of the present invention.

FIGS. 7A–7E are schematic illustrations of several different types ofbarter transactions which may be implemented according to the teachingsof the present invention.

FIG. 8 is a schematic diagram of the components of a barter postingmodule in accordance with the teachings of the present invention.

FIGS. 9A and 9B are tables illustrating general and specific parametersfor classes of barter items that are preferably utilized in a bartersystem made using a Himmelstein Option in accordance with the teachingsof the present invention. Specifically, the “barter/settlement date,open/close” column in the tables is a condition or parameter included inthe Himmelstein Option.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

The preferred embodiment of the present invention will be described withreference to the drawings where like numerals represent like elementsthroughout.

The Himmelstein Option is a new type of financial interest being createdby the present invention. Utilizing Himmelstein Option(s) allows thepresent invention to create a new type of market (“virtual market”),whereby barters may own and/or barter Himmelstein Options forHimmelstein Options, indefinitely, without having to possibly incurordinary or capital gains taxes. Furthermore, as long as the individualwho owns a Himmelstein Option or is in the possession of a HimmelsteinOption does not go to settlement and “take title”, the actual owner ofthe security defers a taxable event.

The system creates web barter dollars to further its ability tofacilitate a virtual market. Web barter dollars are the system'scurrency with a unit (commodity dollar) which is preferably set to equalthe U.S. dollar or some other standard such as foreign currency, goldetc. The system, for example, uses web barter dollars to track an “I oweyou” (“IOU”) to individuals giving up a security but not simultaneouslyreceiving a security back. Preferably, the system uses web barterdollars to supplement or balance a barter in lieu of other currenciessuch as the U.S. dollar. Using web barter dollars or cash simplifies thematching of barter orders where items of unequal value are traded.

When converting IOUs or web barter dollars to a different security, thesystem may charge a different fee based on the age of the IOUs. Forinstance, if the IOU is to be held longer, the system may charge a lowerpercentage or lower fee to convert to U.S. dollars. Further, the systemmay charge a different fee or a different percentage based on therelationship with a particular individual requesting the conversion. Thesystem and barterers may barter web barter dollars for cash at differentvalues. For example, the system may charge a fee to convert from webbarter dollars to cash, but as an incentive provide extra web barterdollars for cash. Should there ever be a need to have the systemredefine or modify its definition for IOUs or web barter dollars, thesystem reserves the right (in the Agreement(s)) and can do so. Forexample, the system may change IOU's or web barter dollars to systemfunds which are portable and permit a barterer to transfer shares ofsystem funds to specific institutions without having to redeem sharesand possibly incur a taxable event. Accordingly, those skilled in theart should recognize that the system can be configured to perform any,and all stock market, banking and financial institution functions.

Referring to FIG. 1, an exemplary barter system 100 is illustrated whichutilizes a computer-based website that may effectuate a tax-freeexchange or tax deferred exchange for swapping barter items. Barteritems are defined including, but not limited to, stock, cash (foreign ordomestic currencies), web barter dollars, Himmelstein Options, CD's,bonds, notes, Option Put, Option Call, Commodities/Futures, Annuities,Muni Bond(s), Government Bonds, Funds, Strips (Zero Coupon Treasuries),Ginnie Mae(s), Fannie Mae(s), Freddie Mac(s), UIT (Unit InvestmentTrust), T-bills and any future created or defined security, commodity orcommodity money. Bartering different categories of items is supported bythe system 100. For example, stocks can be bartered for bonds. Thesystem 100 provides for its own “web-barter dollars” which may beaccumulated or traded by barters using the system 100 and areparticularly useful in facilitating barters where items of unequal valueare traded.

The system 100 preferably includes a barter website 106 which isaccessed via an investing company website 102, or directly via theInternet using a computer such as a personal computer 114 or a wirelesshand-held computer with Internet connectivity 110. Optionally, thesystem 100 may be incorporated as part of an existing investingcompany's website.

In the case of access via an investing company website 102, the bartereruses a computer such as a personal computer 108, a portable computer 116or a wireless hand-held computer with Internet capability 112 to selecta “Barter” icon 103 that incorporates a link 104 to the barter website106. Once the icon is selected, the trader's investing company accountinformation is transferred via a link 104 to the barter website 106. Inthis manner, the barter website 106 is produced with all of the relevantparticulars of each item owned by the individual trader. For example, inthe case of bonds, the website 106 preferably includes the entity thatissued bonds, amount of bonds, market value, interest date and due datedata. In the case of stocks, the barter website 106 preferably includeddata indicating company, number of shares, market value and whetherdividends are reinvested. Using the link 104, the barter website 106 istransparent to a barterer accessing it via the investing company website102.

The system 100 can be further interfaced with traditional brokers sotraditional brokers and clients without the resources to go directly“online” can barter in the same manner.

While the barter system 100 supports bartering different categories ofitems such as stocks, Himmelstein Options for stocks, notes, HimmelsteinOptions for notes, bonds, and Himmelstein Options for bonds, an onlineinvesting company hosting the “Barter” icon 103 can limit barters tocertain categories of items. For example, an investment company websitethat provides online stock trading may chose to limit the barter website106 to only stock and/or Himmelstein Options for stock and/orHimmelstein Option barters. This allows someone (a barterer) to acquirea Himmelstein Option which is, in this case, the right to own stock at afuture date which allows the other barterer the ability to delay ordefer the taxable event. This is accomplished by setting an appropriatefilter so that only stock and/or Himmelstein Option is identified in thebarter orders. Preferably, such a filter also allows use of web-barterdollars and/or cash which enables a wider range of barter orders to bematched and barter transactions to be completed.

Regardless of the items bartered, the barter website 106 composes threemain components: a barter ordering module 105, a posted barter orderdatabase module 117 and a barter matching engine 118. Optionally, thesystem 100 may include a separate database (not shown) of eachindividual's portfolio for all securities. In general, the barterordering module 105 permits a trader, herein referred to as thebarterer, to create a barter order that includes the item to be traded,the item desired and additional parameters related to the barter order.

The table set forth in FIG. 9A reflects typical parameters associatedwith various classes of items or securities to be identified in a barterorder. In each barter order, the appropriate parameters are identifiedfor both the item to be traded and the item to be acquired so that thebarter order comprises two sets of item parameters. The two sets ofparameters may be quite different where the two items which are thesubject of the barter order are of a different class or type.

Each portfolio item, regardless of type or classes, can be transformedinto a Himmelstein Option agreement by defining a future date or rangeof dates for settlement using the last column in the table FIG. 9A. TheHimmelstein Option is posted for immediate barter, but is subject to thespecific settlement date or range identified.

A Himmelstein Option permits a security to go “under agreement” with aspecific future closing date, (similar to a purchase of real estate).Presently, the IRS does not treat this as a taxable event at the time ofthe agreement. An individual who owns a Himmelstein Option may barter itagain (with the same or different terms as the original agreement)without having settlement and obtaining ownership of the underlyingsecurity. Obviously, “different terms” are limited to a subset of termsof the original Himmelstein Option agreement that was issued.

The “standard” Himmelstein Option requires that the individual acquiringthe Himmelstein Option must put up the full amount of the desiredsecurity at that time, (i.e. and nothing at settlement). If the desiredsecurity is also a Himmelstein Option, providing the rights to acquireor transferring the rights meets this requirement. It should be notedthat each Himmelstein option may have different future dates forsettlement. The IRS may attempt to claim that this constitutes aderivative. However, if an individual is bartering away a security andbarters for a security, on future dates utilizing Himmelstein Options,they are receiving a derivative and giving away a derivative.Consequently, in most cases, these derivatives in essence, “cancel out.”The system 100 may further require that the barterers agree on the valuefor the Himmelstein Option should the IRS consider it a derivative.Preferably, the system sets the “barter value” as the default agreedupon value.

The person who issues a Himmelstein Option or barters an acquiredHimmelstein Option chooses the future date or range of dates forsettlement and value which must be accepted by the acquirer. If therewas a future range of dates given for settlement, it is the choice ofthe person acquiring the Himmelstein Option to go to settlement withinthe specified range. The “standard” Himmelstein Option automaticallygoes to settlement on the final day should the person acquiring theHimmelstein Option not choose a date. The system 100 may charge anadditional fee for the actual settlement.

When an individual creates a barter order for any security, the system100 produces an Agreement of Barter, Exchange or Sale (i.e. terms andconditions) Barterers, in essence, fill in the “blanks” of the Agreementof Barter, Exchange or Sale. The system 100 may also require electronicsignatures to accompany the Agreement or may create a parallel Agreementfor each barterer for simplicity and anonymity purposes. The Agreementis also with the system 100, providing various conditions or rights thatthe system 100, intermediary or designated agent(s) has with thebarterer.

At settlement, title to the security or financial interest which is thesubject of the Himmelstein Option is transferred. For stock, forexample, settlement may require the actual transference of StockCertificates. Preferably the traded stocks are not in paper certificateform so that a book entry of the stock transfer may be made to transfertitle.

Once bartered, a Himmelstein Option cannot be canceled by its creator.Himmelstein Options may continually be bartered without being requiredto have settlement. Examples of a Himmelstein Option with appropriateparameters for each of nine different classes/types of items are setforth in the table of FIG. 9B. Similar to FIG. 9A, in FIG. 9B each rowshows one of the items of a barter order, i.e. an item to be bartered oran item to be acquired. A Himmelstein Option may be identified as a “tobe bartered item” and actual stock may be identified as a “to beacquired item” in a given complete barter order. A Himmelstein Optionmay be acquired via the barter system as soon as it is posted, but theactual ownership of the financial interest which is the subject of theoption is not transferred to the acquiring party until the acquiringparty exercises the Himmelstein Option during the settlement period.

When the barterer creates a barter order, the system 100 creates anorder number referencing the barter order. The system 100 may randomlycreate or code barter order numbers so only the system 100 is aware ofthe age of a barter order and the identity of the barterer. The postedbarter order database module 116 accumulates posted barter orders andincludes the software to add, delete and maintain the data in thedatabase. The barter matching engine 118 selectively matches abarterer's barter order with posted barter orders in the database 116.Posted barter orders “matching” a barterer's order are displayed suchthat the barterer can select a candidate or candidates from thedisplayed listing of matching posted orders. The matching processfunctionally operates as a filter to display posted orders matching aselected criteria. Preferably, the filter is set to match the barterer'sselected item to be acquired with posted orders having the same item tobe bartered. The quantity of the selected item may also be used forfiltering to require a direct quantity match or a match within aquantity range. The barterer's selected item to be bartered is also apreferred criteria for the matching filter, so that postings aredisplayed of barter orders which seek to acquire the item selected to bebartered by the barterer. A preferred filter includes both thebarterer's selected item to be bartered and selected item to beacquired. Optionally, the filter may allow both specific items of aclass as well as Himmelstein Options for the specific items. Thus, wherea barterer's desired item is IBM stock, posted barter orders seeking tobarter away IBM stock or Himmelstein Options for IBM stock are displayedas matches.

The barter matching engine 118 is configurable to either match one“best” posted order or multiple posted orders with a barterer's order.The barter engine 118 can also be configured to use the barter website(or an entity chosen by the website) as an intermediary as explained ingreater detail below.

FIG. 2 illustrates a typical stock and/or Himmelstein Option for stockand/or Himmelstein Option barter transaction involving sample postedbarter orders 204–224 stored in a database 216 of module 116 and asample barterer's barter order 226. In this example, the barter orderincludes the stock to be bartered indicated by stock symbol 228, thequantity 230 of the stock to be bartered, the value 232 at which thebarterer is willing to barter, the desired stock 234 indicated by stocksymbol, the value 236 the barterer is willing to barter for the desiredstock, and an “*” indicating the ownership of the Himmelstein Option forthe stock instead of ownership of the stock itself. Preferably, thesettlement date(s) are displayed for all Himmelstein Options. The stockvalues of a barter order need not be a fixed value. For example, valuesidentified for several of the posted barter orders 204, 208, 212,218–224 are based on the current market price of at least one of therespective stocks. Barterer order 226 indicates that the barterer has 45shares 230 of Dupont stock (stock symbol DD) 228 which the barterer iswilling to trade at a value of $20 per share 232 for Aetna stock (stocksymbol AET) 234 at a value of $90 per share 236. If the matchingcriteria is set to match only the barterer's acquire item selection(including Himmelstein Options for the item), orders 204, 206, 208 aredisplayed. If the matching criteria is set to match only the barterer'sbarter item selection (including Himmelstein Options for the item),orders 206, 208, 216 are displayed. If the matching criteria is set tomatch either the barterer's barter or acquire item selection (includingHimmelstein Options for the item), orders 204, 206, 208, 216 aredisplayed. If the matching criteria is set to match both the barterer'sbarter and acquire item selections (including Himmelstein Options forthe item), orders 206 and 208 are displayed. An order combining orders204 and 216 may also be displayed in that situation.

Other criteria such as market value and the other parameters identifiedin FIGS. 9A and 9B for each barter item may be displayed and used formatching. For example, where barter value is required to be matched, ifthe market value of Dupont stock is $20 per share, the barter engine 118matches the order 226 with only one of the posted barter orders fromdatabase 216 namely, with posted barter order 208 from the database 216since this posted order 208 barters Aetna stock for Dupont stock at thesame value prices.

Where an additional matching parameter is set. that all of an item of abarter order must be bartered, the Himmelstein Option for all 100 Aetnashares of posted barter order 208 must be bartered. In the example, thebarter matching engine 118 would then fail to match barter order 226with any posted order unless the barter website 106 acts as anintermediary as described below. Conversely, in an embodiment where thebarter orders include a minimum share barter parameter, the barterengine 118 matches barterer order 226 if the minimum share parameter ofthe posted barter order 208 is less than 11 shares.

FIG. 3 illustrates a multi-order barter selection 300 having first 302,second 308, third 314 and fourth 320 barter orders according to thepresent invention. Multi-order barter selection may be used either whenno single barter order matches are found irrespective of whether singlebarter orders matches are found in order to find all potential availablebarters among the posted barter orders. In this example, the barterengine 118 cannot fulfill the first barter order 302 with a single oneof the other barter orders 308, 314 or 320. The first barter order 302barters Microsoft stock (stock symbol MSFT) 304 for RedHat stock (stocksymbol RHAT) 306. None of the other posted database orders barter RHATfor MSFT, but barter order 302 can be fulfilled if intermediate bartersare matched. The barter matching engine 118 matches intermediate bartersusing several methods. In one embodiment, barter matching engine 118searches for a posted barter order having a desired stock/HimmelsteinOption that matches the barterer's stock/Himmelstein Option to betraded. Since posted barter order 320 lists MSFT as the desired stock324 and the first barter order 302 stock to be bartered is MSFT 304, thebarter matching engine 118 search for the first half of the first barter302 has been satisfied. However, the barter matching engine must find amatch for the desired stock 306 for the first barter order 302 and mustalso find a match for the first half 322 of the third barter order, 320.Accordingly, the barter matching engine must find a transaction thatsatisfies the desired stock Oracle (stock symbol ORCL) 322 of the thirdbarter order 320.

The barter matching engine 118 searches for an order that trades ORCLfor RHAT in order to make a two posted order barter transaction.However, in the example, there is no posted order that trades these twostocks, so the barter matching engine 118 locates barter order 308 thattrades Puma Technologies (stock symbol PUMA) 310 for ORCL 312. Thebarter matching engine 118 then searches for another posted barter orderthat trades RHAT for PUMA to find a transaction candidate. Barter order314 meets this criteria in that RHAT 316 is traded for PUMA 318.Accordingly, barterer order 302 can be satisfied through posted barterorders 320, 308 and 314. In a preferred embodiment so as to make themulti-order transactions transparent to the barterer, barter matchingengine 118 displays multi-order barters as a single “phantom” postedbarter order. The matching engine 118 creates a transaction and displaysthis phantom barter order in the list of matching barter candidates. Thebarterer simply selects the phantom barter order to finalize themulti-order barter transaction. In these examples, it is assumed thatthe values and other parameters set by the barterers permit all barterorders to occur.

In another method for locating multi-order barters, barter matchingengine 118 begins by searching for the barterer's desired stock 306first. Barter engine locates barter order 314 that trades RHAT 316 forPUMA 318. Continuing in this manner, the engine locates the same postedbarter orders as above, but in the reverse order. In general, the engine118 attempts to link multiple barter orders. One of ordinary skill inthe art of software programming appreciates that a recursive algorithmis well suited for generation of such a linked list.

The operation of barter ordering module 105 allows the barterer to enterthe barter order. In one embodiment of the present invention, thebarterer selects minimum barter order parameters such as the specificstock, quantity and value price of the stock to be bartered in additionto the desired stock and value price for the stock desired. Once theseminimum parameters are selected, other parameters are set to defaultsettings determined by barter ordering module 105. In anotherembodiment, order parameters have interdependencies. For example, abarterer selects a quantity of shares of a stock to be traded as 100shares and sets the per share value price to $15. The total value of thestock, $1,500, is computed by the barter ordering module as the productof the quantity of shares, 100, and the per share value price, $15. Inthe case where the barterer subsequently changes the total value of thestock from $1,500 to $2,000, the per share value price of the stockchanges automatically to $20 since the value per share must be $20 toachieve the $2,000 total value with the 100 shares.

Barter orders may be created for stock and Himmelstein Option for stockbarters as illustrated in flowcharts FIGS. 4A–4E and the screen displaysof FIGS. 5A–5F where the barterer is prompted through each step of thebarter order creation process. For bartering other securities orfinancial interests, including Himmelstein Options, the bartering stepsand screen displays are modified to preferably accommodate all of theparameters for the classes of items identified in FIGS. 9A–9B.

The system 100 in its most generalized configuration permits barters ofdifferent securities, financial interests (including HimmelsteinOptions), or classes of items, i.e. Himmelstein Option for stocks forbonds, foreign currency for Himmelstein Option for T-bills, commoditiesfor stocks, options for T-bills etc. The most generalized configurationof the system 100 permits a barter to select any item in the barterer'sportfolio of securities or financial interest as the subject of aHimmelstein Option which is immediately available for bartering wherethe title to the security or financial interest is not actuallytransferred until the Himmelstein Option is exercised in the range ofsettlement dates specified by the barterer creating the HimmelsteinOption. Where a barterer's portfolio includes such Himmelstein Options,that barterer may create a Himmelstein Option of the Himmelstein Optionin which case the range of settlement dates would be within thesettlement date range of the original Himmelstein Option.

In the example of FIGS. 4 and 5, barter website 106 is accessed via anonline stock trading company that limits bartering to stocks,Himmelstein Options for stock, cash, web barter dollars and combinationsthereof. The flowchart of FIG. 4A begins after the trader selects“Barter” icon 103. Accordingly, barter ordering module 105 has receivedfrom the online stock trading website a barterer's list of currentlyowned stocks, Himmelstein Options for stock, web barter dollars and cashin the barterer's portfolio as well as the quantity and other specificsof these securities via link 104. At step 402 FIG. 4A, the websitedisplays all of the barterer's stock, Himmelstein Options for stock, webbarter dollars and cash available for barter. In step 404, The bartererselects from the displayed items in step 402.

In the embodiment of FIG. 5A, a symbol 502 representing a selection ofthe barterers portfolio of stocks, Himmelstein Options for stock, webbarter dollars and cash is displayed. The barterer selects, the downwardtriangle 501, to display all available stocks, Himmelstein Options forstock, web barter dollars and cash as shown in 503, an * indicating theownership of a Himmelstein Option for the stock and date or range ofdates for settlement instead of ownership of the stock itself.Preferably, blanks are provided to indicate an indefinite opening orclosing for the Himmelstein Option settlement period. For example, theDuPont Option, DD* is depicted having an indefinite closing date.

The system preferably further indicates if the barterer's security iscurrently included in a posted barter order requiring the barterer tocancel said posted barter order prior to selecting the security for anew barter order. Optionally, an alphabetical list of companies and/orstock symbols is displayed for alphabetical searching and/or theportfolio quantity 504 of the stock is also displayed. The barterer mayenter the selected item 502 by typing it in. Preferably when thebarterer begins typing the name or symbol of the company, the barterordering module locates the first listed item that matches the enteredcharacters. Alternatively, the portfolio is displayed for selection viaan array of pull down menus 507, each displaying one class of the itemsof the barterer's portfolio.

Once the barterer locates and selects the item to be traded, the totalquantity of the selected item in the barterer's portfolio (as may beprovided by the online stock trading website) is automatically displayedin step 406 of FIG. 4A as the quantity to be bartered. At step 408, thebarterer can modify the quantity to be bartered 410. As shown in FIG.5A, the quantity 504 can be modified via selection of the directionalarrows 505 or the barterer can enter a new quantity value. In eithercase, in this embodiment the barter order module 105 does not allow aquantity value that exceeds the quantity owned by the barterer.Alternatively, the system 100 may be configured to permit the bartererto select a range of quantities to be bartered. For example, thebarterer may specify a range such as 50–100 shares for barter.

Preferably, the barter ordering module 105 has access to trading pricesat step 412 of FIG. 4A, so that the trading price of the selected stockis displayed along with the time and date of the trading price asillustrated in display section 506 of FIG. 5A. A fixed per share valueof the stock or Himmelstein Option 508 of FIG. 5B is initially set tothe trading price. If barterers are trading away cash or web barterdollars, the system 100 in that instance may rearrange the screens andprompt the security being bartered for prior to prompting the cash orweb barter dollars being traded away. As one skilled in the art willrealize, the fields which are not applicable to cash or web barterdollars are modified to properly reflect what is being bartered. At step414 of FIG. 4A, the barterer can elect to trade at the displayed tradingprice or select a new barter value 416. As FIG. 5B illustrates, thebarterer can change the default fixed per share value 508 or select thevalue of the stock to be bartered based on the fluctuating stock tradingprice by selecting block 510.

By selecting the fluctuating value price, the value fluctuates until abarter transaction is finalized by a subsequent barterer who selects thebarter order. For example, if IBM stock was trading at $115 per shareand the barterer selects “barter at current stock trading price”, thebarter price would be $115 per share if the transaction occurredinstantaneously. However, if the barter transaction occurred two weekslater and the stock trading price dropped to $110, then $110 would bethe barter value price. Likewise, if the stock trading price went up,then the barter price would be that higher price.

Optionally, the barter value can be based upon the current stock tradingprice plus or minus a certain value or percentage in step 416 in FIG. 4Aand at step 511 in FIG. 5B or the barter value can range around afluctuating trading price specified as either a value amount or apercentage of the fluctuating trading price. To do this the bartererselects a range around the fluctuating stock value as illustrated inFIG. 5B at 512, 518. The range can be a value amount 514, 517 or apercentage of the fluctuating trading price 516, 519. By selecting boxes512 or 518, the barterer selects whether the range is added to orsubtracted from the fluctuating value. For example, if the range was setto plus 1 percent at step 416 (by selecting box 512 and entering 1% inbox 516) and the market price for IBM stock to be bartered, at the timeof the barter transaction was $115 per share, a posted barter order witha value price between $115 and $116.15 would match the barterer's order.A barterer may issue a Himmelstein Option to barter away IBM stock aslow as minus 9 percent of the $115 IBM market price by checking box 518and entering 9% at box 519 so that a posted barter order with a valueprice between $104.65 and $115 would match the barterer's order.

Once the value of the item to be bartered is selected in step 416 ofFIG. 4A, the barter ordering module displays at step 418 of FIG. 4B thetotal barter amount and the percentage or dollar amount of the valueprice in relation to the available market price per share in FIG. 5B, at520. Should a range of value price be selected, the display 520 ismodified to reflect such. In the example of FIG. 5B, the barterer canchange the barter value 520 by clicking on a “change” icon 522 and goingthrough the appropriate steps or accept the value 520 by clicking on a“continue” icon 523. This is also shown at step 420 of FIG. 4B.

At step 422 of FIG. 4B, barter order fee amounts are displayed. Feeamounts, as illustrated in sample screen display lines 524 and 526 ofFIG. 5C, are determined based on whether the barter order is to beposted to the barter order database 524 or the barter should occur withthe barter website directly 526.

At step 424 of FIG. 4B, the barterer selects the time in which thebarter order is valid. As illustrated in the embodiment of FIG. 5C,timing options 528 are displayed once the barter selects the down arrow.The five options are:

-   -   1) day only;    -   2) good until canceled;    -   3) fill or kill;    -   4) immediate or cancel; or    -   5) only view the current posts.

The “day only” options means that the barter order can be posted to theposted barter database only until the end of the day. Thereafter, thebarter order are expunged from the posted barter order database. The“good until canceled” option means that the barter order remains postedto the posted barter order database until it is canceled by thebarterer. If the “fill or kill” timing option is selected, the entirequantity must be filled or the barter order is canceled. With “fill orkill” timing, the barter order is not be added to the posted barterorder database, but the database is searched for a match. Similarly, abarter order is not added to the posted barter order database if the“immediate or cancel” timing is selected. In this case, a posted barterorder for only part of the barterer's quantity matches the barterer'sorder. The last timing option, “only view the current posts”, never addsthe barter order to the posted barter order database. Instead, thebarter matching engine 118 displays the current matches found in theposted barter order database.

At step 426 of FIG. 4B, the barterer may select special conditionalparameters. The available special conditions are “minimum quantity,” “donot reduce,” “all or none,” and “deferred settlement.” The displayportion 530 of FIG. 5C illustrates one means of selecting specialconditions. In this embodiment, the barterer may select one of theconditions by selecting a corresponding box. If the minimum quantitycondition is selected, the barterer then either adjusts the displayquantity via the arrows or enters a minimum quantity value. The defaultminimum quantity may be set to equal the barter quantity 504. Selecting“do not reduce” means the per share value will not be reduced even ifthe transaction date is the stock's dividend date. If the bartererselects the “all or none” option, all barter matches must barter theentire quantity of the stock to be traded away.

Selecting the “deferred settlement” condition creates a HimmelsteinOption of the item being bartered. The barterer is then required toidentify open and close settlement dates, which may be the same. If thebarterer is already bartering a Himmelstein Option, the barter orderingmodule 105 automatically selects “deferred settlement” and displays thedate used by the original creator/issuer. The barterer may modify thedates as long as the modified dates are within the range of dates usedby creator/issuer. Optionally, at step 531, FIG. 5C the barterer mayenter a subsequent amount of the security or a different security to beprovided at settlement. As hereinbefore described, the system willprompt barterer to include minimum criteria to clearly identify thesecurity and the value.

At step 428 of FIG. 4B, if the desired security is stock, the bartererselects between three choices for the desired stock with respect to adividend reinvestment option. Accordingly, the barterer choosesbetween: 1) the stock must have a divided reinvestment program; 2) thestock must not have a dividend reinvestment program; or 3) accept newstock with or without a dividend reinvestment program. In the embodimentillustrated in FIG. 5D, the barterer selects the desired option byselecting the corresponding box in section 532.

At step 429 of FIG. 4B, the barterer chooses the type of barter theywish to transact, (i.e. a direct barter only or permit the website toact as the barterer or use an intermediary if a direct barter is notavailable). The barterer can request a direct barter with an order fromthe posted barter database at a first fee rate, or in the alternativefor a second fee rate, the barterer can request the website to be thebarterer. The first and second fee rates may be the same or changeindependent of each other. At times to promote automated websitebartering, depending on the securities to be bartered, the second feerate may be set at a relatively low rate, or it may be set to a premiumrate for the automated service. According to the embodiment illustratedin FIG. 5D, the barterer selects the type of transaction in section 534.

Following the selection of barter type, step 429, posted barter ordersmay optionally be displayed 430 based on matches of posted order “to beacquired” items with the barterer's “to be bartered item.” In the caseof a direct barter, a trade can be displayed immediately if a match isfound in the database, or the barterer can complete and post the orderto the database and await a match from a subsequent barterer. In thecase of a barter with the website, the transaction is displayedimmediately provided the website can buy or obtain the stock,Himmelstein Option, web barter dollars or cash desired by the barterer.Here, the website uses a predetermined formula including taking intoaccount the relationship with the barterer to calculate the fee for thistype of transaction.

The barterer selects the desired stock, Himmelstein Option, web barterdollars or cash price to acquire for the barter order at step 431 ofFIG. 4B. If the barterer's desired security is a stock, HimmelsteinOption, web barter dollars or cash, the barterer checks the appropriatebox in display 537 as illustrated in FIG. 5D. Optionally, if thebarterer's desired security is stock, the system 100 displays all stockand Himmelstein Options for the desired stock in the database, allowingthe barterer to accept a Himmelstein Option in lieu of actual stock. Ina manner similar to that of selecting a stock to be traded from thebarterer's portfolio, stock symbols 535 are displayed upon selection ofa down arrow. Optionally, the barterer can select from a list ofindustries 536 wherein the stock symbols 535 are filtered to list onlythose related to the selected industry. Alternatively, a mergedalphabetical list of companies and/or stocks is shown for alphabeticalsearching. Additionally, the system 100 can be configured to showvarious companies (in a predefined sort) including the symbol andpredefined financial information.

If the barterer chooses a stock or Himmelstein Option, by selecting it,the system 100 displays the symbol 535 pertaining to the chosen company.Next, in step 432 of FIG. 4C the barter ordering module informs thebarterer of the available stock trading price of the desiredstock/Himmelstein Option, along with the current date and time. Onemethod of displaying the price is illustrated in FIG. 5D at section 538.

The barter value of the desired item defaults to the available stocktrading price at section 540 of the display of FIG. 5E for stock, orHimmelstein Option. Further, if the system 100 had a barterer trading astock or Himmelstein Option for cash or web barter dollars, the system100 may prompt in 540, the stock trading price of the stock orHimmelstein Option being traded away. The barterer can accept thedisplayed value at step 434 or select a new value at step 436 of FIG.4C. In the display of FIG. 5E, the desired stock value for stock orHimmelstein Option can be selected similar to that of selecting thestock value to be traded. The barterer can select a fixed value usingbox 540 or a value plus or minus the stock trading price (similar tostep 511, as shown in FIG. 5B) or a fluctuating stock value range insection 541 in a manner as described in connection with 510–519 of FIG.5B. The stock value can range around a fluctuating trading pricespecified as either a value amount or a percentage of the fluctuatingtrading price. Thereafter, as indicated in the flowchart of FIG. 4C atstep 438, the total desired barter amount and percentage or dollaramount to the stock trading price is displayed as illustrated in sampledisplay 542 of FIG. 5F. At step 440 of FIG. 4C, the barterer can changethe barter value of the desired item which steps can be implemented byclicking the “change” icon of display section 542 of FIG. 5F.

At step 442 of FIG. 4C, the present invention assists the barterer indetermining whether the barter order is financially advantageous to thebarterer. Several ratio formulas, termed Himmelstein Value Ratios, areprovided to assist the barterer. In the embodiment of FIG. 5F at section544, the barter ordering module selects the specific formula and theHimmelstein Value Ratio is displayed. The barterer may then change thebarter order per step 444 by selecting a change icon in section 544 ofthe display FIG. 5F.

In an alternative embodiment, the barterer selects the desired formulaafter receiving help text describing the formulas. Regardless of themethod used to select a particular formula, there are three preferredformulas:(x/y)/(a/b)  Value Ratio 1)(a/b)/(x/y)  Value Ratio 2)(b/a)−(y/x)  Value Ratio 3)where:

-   -   a=value price for security/Himmelstein Option desired to trade        away    -   b=current security trading price for security/Himmelstein Option        desired to trade away    -   x=value price for security/Himmelstein Option desired to obtain    -   y=current security trading price for security/Himmelstein Option        desired to obtain

For example, using Himmelstein Value Ratio 2, a barterer owning Cokestock or Coke Himmelstein Option is willing to barter it away at a valueof $65 per share, and Coke is currently trading at $67 on the stockmarket. If the barterer desires to barter for IBM stock, or IBMHimmelstein Option at value of $110 per share and the stock is currentlytrading at $115 per share on the stock market, the value ratio formulais: ((65/67)/(110/115))=1.014, which means that if the barterer tradingCoke stock/Coke Himmelstein Option for IBM stock/IBM Himmelstein Optionchose to complete the transaction, they will gain 1.4 percent. Inessence, in this formula anything less than 1 is a stock/HimmelsteinOption barter transaction that loses value and anything greater than 1is a transaction that gains value. This formula is important tounderstand the relationship between the value of the stock/HimmelsteinOption that is being traded away and the stock/Himmelstein Option thatis being obtained. In lieu of displaying the value ratio, the system 100may display the actual percentage of increase or decrease afterinterpreting the value ratio. Variations of the above formulas may alsobe used. Any Himmelstein Value Ratio formula may be modified by addingor subtracting a predetermined value or variable. For example, Formula(a/b)/(x/y) may be changed to have the value “−1” subtracted to itmaking the new Formula (a/b)/(x/y)−1. If Himmelstein value formula(a/b)/(x/y)−1 is greater than 0.00 then to what extent greater is thepercentage of profit, which in the above COKE/IBM example is 1.4%. AnyHimmelstein Value Ratio formula may be modified by multiplying ordividing a predetermined value or variable. For example, formula(a/b)/(x/y) may be changed to have the variable “y/x” multiplied to itmaking the new formula (a/b)*(y/x) or (y/x)*(a/b). If Himmelstein valueformula (a/b*y/x) is greater than 1.00 then to what extent greater isthe percentage of profit, which in the above COKE/IBM example is 1.4%.Any Himmelstein Value Ratio formula may be modified by having both apredetermined value or variable added or subtracted while at the sametime multiplying or dividing by another predetermined value or variable.For example, formula (b/a)−(y/x) may be changed to have the value of “1”added to it and have the variable “−1” multiplied to it making the newFormula ((−b/a)+(y/x))−1 or ((y/x)−(b/a))−1. If Himmelstein valueformula ((y/x)−(b/a))−1 is greater than −1.00 then to what extentgreater is the percentage of profit, which in the above COKE/IBM exampleis 1.4%.

For securities such as CD's, bonds, annuities and government bonds thatprovide an interest rate/current yield until a due/maturity date, thesystem may calculate the actual income from that present day forward tobe earned, factoring in the type of interest and adding same to allapplicable variables (i.e. b or y) in the above stated formulas. For thesecurities stated above, the barter order module may require thesettlement date to be the same date as the due/maturity date. In otherwords, the variables in the above formulas would be defined as:

-   -   a=value price for security/Himmelstein Option desired to trade        away.    -   b=current security trading price for security/Himmelstein Option        desired to trade away, plus future interest income from that        present day forward to be earned, but not paid, before the        earliest settlement date of the securities being bartered.    -   x=value price for security/Himmelstein Option desired to obtain.    -   y=current security trading price for security/Himmelstein option        desired to obtain, plus future interest income from that present        day forward to be earned, but not paid, before the earliest        settlement date of the securities being bartered.

For barter items or securities such as CD's that do not have a currenttrading market, the system 100 can also calculate the accrued, not paid,interest from issuance up to the present day. In other words, thevariables b and y in the above formulas in such instances are modifiedas follows:

-   -   b=system calculated security trading price for        security/Himmelstein Option desired to trade away includes the        following:        -   original purchase price or face value of barter item or            security plus,        -   accrued unpaid interest income from issuance up to the            present day plus,        -   future interest income from that present day forward to be            earned, but not paid, before the earliest settlement date of            the securities being bartered.    -   y=system calculated security trading price for        security/Himmelstein Option desired to obtain includes the        following:        -   original purchase price or face value of barter item or            security plus,        -   accrued unpaid interest income, from issuance up to the            present day plus,        -   future interest income from that present day forward to be            earned, but not paid, before the earliest settlement date of            the securities being bartered.

Optionally, for securities such as CD's that do not have a currenttrading value, the system 100 may have the applicable variables (i.e. bor y) include the original purchase price or face value plus accruedinterest income, excluding future interest income so that the systemprovides a “current day” value. The barterer may select the desiredformula, including the definitions of b and/or y for each security in abarter transaction after receiving help text describing how eachvariable may optionally be defined in the formulas.

If the securities being bartered have different due/maturity dates, thesystem 100 may use the present day to the earliest settlement date asthe period of time for calculating the income to be earned, calculatingeach securities' actual interest rate/current yield, factoring the typeof interest, and adding same to the respective variables (i.e. b or y).To ascertain a more accurate value ratio, when one security has interestincome, such as CD's, and another security does not, such as stock, thesystem may include or exclude interest income from the value ratioformulas depending on the formula chosen by barterer/system. The system100 may disclose and or incorporate the actual formula(s) used toascertain the value ratio into a finalized transaction agreement.

Where no conventional market value is available, the system 100 may beconfigured to examine posted barter orders or develop methods or newformulas to determine a current trading price.

Referring to FIG. 4D at step 446, the barterer can review the barterorder prior to submission of the order to the barter matching engine. Asillustrated in the embodiment of FIG. 5F the barter order module listsat section 546 the terms and conditions before the barterer submits theorder by clicking an appropriate icon 548. Alternatively, the barterermay decide to terminate the barter order creation by clicking a “QUIT”icon 549.

Once the order is submitted by the barterer at step 448 of FIG. 4D, thematching engine searches the website database for a barter order or inan embodiment where the engine matches multi-order barters, multiplebarter orders to satisfy the submitted order. If no match is found atstep 450, the barter matching engine determines whether the order shouldbe posted to the database 452 based on the timing selected at step 424of FIG. 4B. If the order should be posted, the barter order databasemodule 116 posts the order to the database.

After the barterer clicks on the “continue/agree” icon 548, (anddepending on the timing chosen), the system 100 in accordance with FIG.4D posts the barter as an available transaction 452, 456 and/or findsand displays “matching” posted barter orders 450, 454 via the screendisplay illustrated in FIG. 6. The “matching” in the preferredembodiment includes matching the barterer's desired item and barteritems with the barter and desired items of single or multiplecombinations of posted barter orders where any matched Himmelsteinoptions have overlapping settlement dates.

Where posted barter orders are displayed, preferably the barter ordersare listed by the lowest share price of the stock or Himmelstein optionthat the barterer wishes to acquire such as in display section 610 ofFIG. 6. If any one of the available barter orders requires the price tofluctuate with the stock market, the display is preferably continuallyupdated so that the prices reflect market value as close to real time aspossible. The screen also displays the order number, symbol, shareprice, ratio to stock trading price, value ratio, number of shares,barter amount, barter price fluctuate with stock trading price, specialconditions, timing, and dividend reinvestment criteria.

If the individual decides that they are willing to barter away some orall of their selected portfolio stock/Himmelstein option for one or morebarter orders listed, they select to do so 458, of FIG. 4D (or as longas they have more barter amount available) by simply clicking on eachorder, (i.e. choosing first preference then second preference, and soon). Each time an order is chosen, the system 100 permits/requires theindividual to revise their original quantity, and value price in thestock/Himmelstein option for which, they desire to trade away in thebarter, thereby requiring the individual to accept the prices and theamount of stock/Himmelstein option received in return from the barterorder that they had selected. When a posted order is chosen, the system100 enters the corresponding information in a table on the screen tonotify the individual of the transaction number, number of “sharestrading away” with item price, number of “shares receiving” with itemprice and barter amount with totals at bottom of the table as reflectedin screen table 620 of FIG. 6. For cash and web barter dollars, thefields which are not applicable remain blank. Optimally, the system maydisplay in 620, the after date and before date for Himmelstein Optionsbeing acquired or bartered.

Each time a transaction is chosen, the system 100 reduces the value for“amount of barter left” in a display box 622. If an individual has lessthan an available barter transaction, (with no special conditions nortiming limitations) when the individual selects the order number, thesystem 100 shows the number of shares for which the barter is permitted.Upon selecting each order, the system 100 shows the residual amount in adisplay box 624 and presents three choices 460: 1) holdstock/Himmelstein option in escrow; 2) donate the stock/Himmelsteinoption; and 3) purchase other stock/Himmelstein option. If any of thesechoices are chosen, the system 100 displays additional screens tocomplete the above tasks. Optionally, the system 100 may allow thebarterer to convert the residual amount into web dollars which are addedto the barterer's portfolio after the transaction is completed.

Additionally, when a barter order is chosen, the system 100 “locks” thebarter order, including the price, to the individual for a predeterminedduration. A display of the time remaining to complete the transactionappears in a “time remaining” display box 626. Should the time expire,the system 100 provides two options: 1) finalize transaction; 2) or losetransaction in “X” seconds, with seconds decrementing on screen. Thesystem 100 may, if desired, inform the individual that someone else islooking at the same barter order and may inform other users that thereare pending barter orders which may come available.

Upon the individual reviewing available barter orders and deciding whatthey want to do, (i.e. accept one or more orders or none), they proceedby choosing one of the following four icons 631–634: 1) clear; 2) changebarter order; 3) finalize transaction; and 4) finalize transaction butdisplay more barter options. Each option leads to the display ofadditional screens to complete, the selected task as indicated in FIG.4E.

In addition to the main bartering screens, the system 100 may includepop-up screens to show “history” of past barter transactions and to showperformance on how a security is performing, and the current value ratioformula provided from past transaction(s). If an individual barteredaway Himmelstein Option(s) that have not gone to settlement, the systemprovides a screen selection showing the security or securities, therange of settlement dates allowed and preferably includes all of thecriteria or information in the actual barter transaction.

The system 100 exhibits other special conditions such as if the value ofa security falls, the system 100 may require barterers to barter some orall of a security back; an election to require that the value ratio muststay within a specified range for a specified time or trigger an actionby the system 100 such as a penalty, or forcing the individuals switchsome or all security back, etc.; and the entry of multiple securities orsymbols, and corresponding value prices, and permit the system 100 toautomatically take the best value ratio as long as value ratio is over aspecific number (i.e. such as 1.00) set by the barterer and the system100 automatically completes the transaction if posted barter ordersexist meeting that criteria.

The system 100 may be programmed to automatically purchase securitywithin a predetermined value range when a barter order is posted ormarket values change, complete a barter transaction for the barter orderand sell the acquired security while charging an appropriate fee. Thesystem 100 may act as a negotiator between barterers, sending each ane-mail or otherwise notifying them when the search engine discoverspotential matches among barter orders. The system 100 may permit accessby individual barterers to the identity of barterers who have posted“matching” barter orders to allow them to negotiate directly betweenthemselves through e-mail or otherwise. The system 100 may requiree-mail sent through it to purge “identity” (i.e. ensure anonymity). Thesystem 100 may create an e-mail subsystem allowing individualsinteresting in bartering to enter limited pertinent information into theblanks of the agreement being presented to one another only identifyingthe individuals by the order number that was created by the system 100when it originally posted the barter order. This is referred to as an“offer to purchase.” The system 100 may lock the individual's securitybeing offered for a specified time allowing the individual receiving theoffer time to accept, modify, or reject the offer. In other words, theindividual making the offer cannot back out unless the person receivingit fails to respond within the time frame, modifies it or rejects it.

The system 100 can also be configured for telephone access so that allfunctions that one may do online may be done over the telephone.Additionally, pre-approved individuals can be permitted to barter forsecurities (which the website holds in escrow) prior to bartering theirown securities.

In the generalized version of the barter system, various types ofbarters may be implemented as schematically illustrated in FIGS. 7Athrough 7E.

Referring to FIG. 7A, a two party exchange or direct barter isillustrated. For example, Individual “A” barters directly withIndividual “B” effecting an exchange of securities, X and Yrespectively. Example, Individual “A” issues or posts a HimmelsteinOption to barter 100 shares of AOL worth $1,000 (Stock “X”) for 200shares of IBM worth $1,000 (Stock “Y”) after Jan. 1, 2000 and beforeFeb. 1, 2005. Individual “B” accepts the Himmelstein Option effectuatingan agreement to immediately barter 200 shares of IBM for the rights toacquire 100 shares of AOL in the future. A receives the 200 shares ofIBM from B and irrevocably commits A's 100 shares of AOL to betransferred to B or B's designee at any time settlement is demandedbetween Jan. 1, 2000 and Feb. 1, 2005.

In the event the barter transaction is not an exact match in value, thesystem 100 may balance the barter transaction by allowing one bartereror the other to pay cash, provide web barter dollars, offer a differentsecurity, such as a Himmelstein Option on a different security, or allowthe barterer to acquire more of the particular security that they arebartering.

Referring to FIG. 7B, a two party exchange with an intermediary isillustrated. For example, Individual “A” barters with Individual “B” totrade away security X and acquire security Y through an intermediary. Ifa match is located but the values are not equal, the intermediary mayretain the excess security and supplement the barterer bartering awaythe greater value security with cash, provide web barter dollars, adifferent security, such as a Himmelstein Option on a differentsecurity, or acquire more of the desired security (by first acquiringsuch).

The intermediary either obtains additional cash, a security, such as aHimmelstein Option, or more of the desired security, such as aHimmelstein Option from the other barterer and/or from a third party(upon which the intermediary reciprocates a security, such as aHimmelstein Option, cash, or web barter dollars). For example, using thesame values above, Individual “A” issues or posts a Himmelstein Optionto barter 100 shares of AOL for 200 shares of IBM. Individual “B” has100 shares of IBM that he would like to barter for the rights to acquire50 shares of AOL in the future. The intermediary keeps the HimmelsteinOption for 50 shares of AOL and acquires the additional 100 shares ofIBM and completes the exchange with individual A.

FIG. 7C illustrates a three party transaction with an intermediary.Individual “C” barters away security Y to receive security X. Theintermediary, which may be the barter website, identifies Individuals“A” and “B” to complete the transaction. Individual A sells or barterssecurity X for cash and Individual B buys or barters security Y forcash. The cash amounts may or may not be equal, but Individuals A, B andC may incur a service charge from the intermediary/website for theservice provided. In lieu of cash, web dollar credits are preferredwhere the website acts as intermediary. In another embodiment, thesystem 100 may allow the barterers to barter away their securities orfinancial interest at a different time than when they receive a securityor financial interest. This is a “Deferred Exchange.”

FIG. 7D illustrates a three party transaction without an intermediary.,In this example, barterer “A” receives cash for security or financialinterest X. Barterer “B” receives security or financial interest X inexchange for security or financial interest Y. Barterer “C” receivessecurity or financial interest Y for the cash which is received bybarterer A.

FIG. 7E illustrates a two party exchange with an intermediary. Barterer“A” wants to exercise a Himmelstein Option (i.e. have settlement andtake title) to own the security in the Himmelstein Option. In thisillustration, the system 100 may require in the Agreement that toexercise the Himmelstein Option, the barterer must do so through thesystem 100. Barterer A trades the Himmelstein Option on financialinterest X for the actual interest X to the intermediary. Theintermediary acquires the interest X from source B in exchange forconsideration Z. The intermediary then maintains Himmelstein Option forX in its own portfolio for future bartering. Z may be web dollars orsome other security or interest acquired by the website in a similarmanner. Alternatively, if the value of Z is more than the HimmelsteinOption for X, the system 100 allows Barter “A” to exercise theHimmelstein Option (i.e. have the settlement on security X).

Where the system 100 or a designated entity acts as an intermediary, abarterer can create a barter order that does not require a security atthe same time it barters away its own security. For example, anindividual may allow their security to be bartered for an interest ofequal value which the barterer can identify at a later time. Theunderstanding being that the barterer can defer the completion of thetransaction by the website or a designated entity acting asintermediary. If another barterer accepted the barter order terms, thefunds for the transaction are immediately placed in an escrow account.For example, if the current tax law permitted, the system 100 wouldallow “X” number of days to choose a particular security and “X” numberof additional days to actually acquire the new security. Therefore, thewebsite or a designated entity may hold the securities in escrow as athird party. The website or a designated entity may, upon being directedby the barterer who has funds in escrow, acquire a specific security tocomplete the barter. In this embodiment, the system 100 may continuallyupdate the barterer with respect to the security such as stocks (re:stocks that the individual informed the system that they were interestedin) with respect to the current “closest” matches for a specific stockor range of stocks that exist in the database system, based on the valueratio formula(s) that were previously defined herein. This can be doneby either e-mail, phone, or when the barterer accesses the website.While online, the system 100 may continually update the closest matches,thereby permitting an individual to either ignore, choose one, or choosemultiple ones. If the individual chooses a match or several matches,with excess remaining funds, these excess funds are held in escrow.

The system 100 may be configured to only barter Himmelstein Options orthe future rights. Reiterating, a Himmelstein Option is an agreementgiven by the individual that owns the barter item or security, anirrevocable right to another party that after a specific date and beforea specified date, this party has the right to “go to settlement” andacquire the barter item or security. Further, the Himmelstein Optionallows the party in possession or any party currently in possession tobarter said Himmelstein Option, i.e. transfer said rights forsettlement. Barter order parameters then include an “after date” uponwhich a Himmelstein Option may be exercised and an “expiration date”that the Himmelstein Option expires. The expiration date may be anindefinite date. For example, barterers may do this to diversify theirportfolios where they do not have the right to sell a securityimmediately, (such as via a preexisting agreement with an employercompany). If the security is unregistered, the system can, after theholding period, directly process the stock with a designated transferagent in order for it to be allowed to be transferred, i.e. go tosettlement. In this instance, only Himmelstein Options are able to beimmediately bartered since the barterer cannot transfer the securityuntil after a specific date.

The Himmelstein Option value and security value may be different, andusually would be different if the Himmelstein Option expiration date isa specified date and not open or “indefinite”. Both dates and values arepreferably displayed for matching barter orders in a manner similar tothe display of FIG. 6.

Acting as an intermediary, the system 100 can hold a barter item orsecurity in a trust account if, or until, someone exercises aHimmelstein Option to acquire it. A barterer posting a HimmelsteinOption barter order chooses the after and expiration date which date(s)must be within the terms of their Himmelstein Option if they are not theactual owner of the security. The system 100 may prompt the expirationdate as “indefinite”, with the barterer who is creating the HimmelsteinOption away having the ability to modify the Himmelstein Option barterorder with a specific date. The value of the “Himmelstein Option” isworth less if there is an expiration date, at which time the HimmelsteinOption no longer exists. If the barter item or security subject to theHimmelstein Option is held in trust by the system 100, the systemreturns the item or security upon expiration date to the barterer whohad offered the Himmelstein Option or the party who settled theHimmelstein Option and obtained “title.” The purpose of the system 100holding the security “in escrow”, or in trust, is to ensure that abarterer acquiring a Himmelstein Option has a complete assurance thattheir right of ownership is “guaranteed” should they exercise it at afuture date. The system 100 has the ability, (if it were a security suchas stock or a mutual fund), to include or exclude the dividends, longterm gains and losses and short term gains and losses. If the dividends,long term gains and losses, and short term gains and losses wereincluded, at the end of each tax year, the 1099-DIV and gains and lossesissued may be transferred to the system 100 as the “nominee” which mayin turn, make the “nominee” the individual who had obtained theHimmelstein Option or the rights of ownership to the security.

Himmelstein Options having an “after date” and an “expiration date” whensettlement can occur has a number of benefits for individual barterers.A barterer bartering away securities can ensure that a sale occurs afterthe barterer has owned the security more than one year so that anyincome is taxed at capital gains rate instead of ordinary income rate.If a barter works for a company that requires them not to sell thesecurity for a specific time period, but the barterer wants to diversifytheir portfolio, the system 100 allows them to do so.

The system 100 has other advantages. For example, incorporating thesecurity stock into a Himmelstein Option that is bartered removesuncertainty (i.e. future risk). This is beneficial in many instances.For example, successful, educated investors desiring to decrease theirstock portfolio can recognize this benefit and utilize the HimmelsteinOption to reduce their stock portfolio in a controlled manner.

Since the system 100 allows securities, such as CD's to be incorporatedinto a Himmelstein Option, if one wanted to become liquid prior tomaturity, one can barter away a Himmelstein Option on the CD in lieu ofincurring a penalty for early redemption. The net value of theHimmelstein Option issued is logically set by the barterer to be lessthan the penalty.

The system 100 is preferably configured to internally track allindividual rights when acting as an intermediary or escrow. If abarterer wants to “cash out”, the system may permit them to barter theirsecurities including a Himmelstein Option away for cash, oralternatively require them to exercise their Himmelstein Option and thensell their securities that they acquired.

For tax purposes, the system 100 can require a barterer to transfer withthe security their estate exemption (or a portion thereof) up to theallowed estate exemption amount (which is currently $625,000) as a gift.In this case, the barterer is not entitled to this at death. When thatindividual receives a security in return, the individuals from whom thesecurity came would also have given an estate exemption. Also, thesystem 100 can be configured to utilize the gift tax exemption. Inessence, allowing a barterer to gift up to the maximum non-taxableamount, which is currently $10,000, to each and every individual thatthey barter with at which time they receive the same amount back in thesecurity such as cash as “a gift”. This requires all gift transactionsto be less than or equal to $10,000.

If Section 1031 of the Internal Revenue Code of 1986 is amended toinclude securities as defined earlier, the present system can beconfigured to effectuate a tax deferred exchange should one or bothbartering parties desire such. Further, the system 100 can be adapted,modified or changed to utilize or capitalize on any existing or futuretax laws.

Per the S.E.C., barter transactions or transfer of rights are notregistered. Thus, this system permits bartering in a discrete and/oranonymous manner, (i.e., not informing the public). However, the system100 is preferably configured to compile historical barter informationregarding barter transactions of each barter. Additionally, the system100 may be modified to meet S.E.C. regulations, if required. Terms andConditions in a Himmelstein Option can include contingencies forsettlement. For example, a Himmelstein Option may be bartered with acontingency that for settlement it must meet SEC approval.

The present system permits any type of securities or financial intereststo be bartered, including but not limited to CD's, stocks, bonds, notes,evidences of indebtedness or interest, interests in a partnership,certificate of trust or beneficial interest, etc. The system 100 caninterface with or be incorporated as part of online companies in such afashion that it is transparent to the clients of the online tradingcompany. When a client from an online trading company desires topurchase a particular security, the online trading company may choose toacquire, if available, from another individual who has entered atransaction to barter their security away. The online trading companycan act as the intermediary and barter for the security, in essencemaking the online trading company the system 100 barterer with theability to acquire new stock and/or any security, and then sell it totheir online client. By doing this, the online company can keep theentire spread between the “ask and bid” with no commissions, andundercuts traditional stock exchanges in price and speed by eliminatingintermediaries such as floor brokers or specialists from the tradingprocess.

The system 100 can be configured to handle “exchange funds” often knownas “swap funds” or (Private Placement Memorandum) P.P.M. wherein anindividual puts in their financial interests or security (such as stockshares) into the fund for exchange units of the entire fund. This allowsthe individual to diversify their financial interests or securities suchas stock holdings without having to pay capital-gains taxes. In such acase, the system 100 maintains “system” funds and barterers exchangevarious financial interests for units of the “system” fund. The system100 can also be configured to further open and close new funds whendeemed necessary by the system or by pre-set parameters.

The system 100 can allow barter orders to require only some security upfront at the time of the Himmelstein Option Agreement being consummated.This portion of the security or commodity may or may not be refundable.The balance of the Agreement would only be paid if the HimmelsteinOption is finalized, or ownership of the security is transferred.

For example, a posted transaction can state that the Himmelstein Optionmust occur after Jan. 5, 2000 and before Jan. 6, 2000 and the bartereris bartering AOL stock for cash or web barter dollars for $5.00 pershare paid immediately which is non-refundable and $95.00 per share atsettlement. Individuals accepting this Himmelstein Option must pay the$5.00 per share which is non-refundable. On Jan. 6, 2000 if the AOLstock is less than $95.00 per share, the individual will choose not toexercise their rights in the Agreement, thereby allowing the Agreementto expire. This is to be defined as selling long, in the “virtual stockmarket”, (i.e., system 100).

In an alternative embodiment, the system 100 may allow a barterer toissue a Himmelstein Option on a security that the barterer does not own,nor have a Himmelstein Option (i.e. rights to own). If, or when, theHimmelstein Option is chosen (for example, by person “A”) the bartereris required to acquire the security or the Himmelstein Option that wasbeing traded away, on or before the date after the barter transactionmay occur, to then hand it over to person “A”. This is to be defined asselling short or trading futures in the “virtual stock market” (i.e.system 100).

The virtual market (i.e. system 100) can handle what is referred to inthe financial industry as a margin account wherein the system 100 allowsthe barterer to borrow web barter dollars, cash or issue HimmelsteinOptions against the value of their portfolio including HimmelsteinOptions in their possession.

When someone issues a Himmelstein Option, the barter transaction canalso allow the person issuing the Himmelstein Option to enter adifferent before and after date for the Himmelstein Option for the newsecurity desired. Therefore, in this embodiment, the system 100 mayrequire the person posting the transaction for the Himmelstein Optionfor the security desired to give a specific date before, and a specificdate after, or a range of dates that would be acceptable. This range ofdates may be disclosed to potential barterers; or in the alternative,can be undisclosed (making a potential barterer be required to choosespecific dates, before and after) without knowing the range of datesthat the individual posting the Himmelstein Option used.

With respect to the securities that provide dividends, interest etc.,the system 100 can further do the following. The system 100 may keep thedividends, interest etc. as part of the transaction, and may put in acommon “pool” all dividends, interest etc. realized. A formula is usedto proportion the amount between any, and all, clients holdingHimmelstein Options for the specific class of items.

The system 100 can require barterers to enter Himmelstein Options orbarter orders in round lots. For example, if the security was stock, thesystem 100 can require increments of 100 shares.

The system 100 can have the ability to break down posted order(s) intospecific dollar and or quantity amount(s) allotment and re-post. Forexample, if the system 100 chose to break down into a specific dollaramount, the system 100 can choose one thousand dollar amount(s) orblock(s). If someone posted 10 shares of IBM stock at $110.00 for eachshare, the system 100 can re-post to be 2 barter orders: one order to be9 shares of IBM stock with 10 web barter dollars; and one order with 1share of IBM stock as the residual amount. In another example, if thesystem 100 chose to break down into a specific quantity amount in thesecurity “stock”, the system 100 may decide to break down posted ordersto allotments of 100 shares and post the remaining portion (if any) thatisn't dividable by 100. For example, if the posted order was 1220shares, the system 100 can re-post to be 13 barter orders: (12) barterorders with 100 shares and (1) barter order with 20 shares. Further, ifthe system 100 wanted all residual amount(s) to be a specific figure,the system 100 can require the balance of the security plus web barterdollars to always be a specific value. The purpose is to simplify thebarter values to be essentially equal to a common value or multiplecommon values in the system 100 to facilitate more barter transactions.

As a “virtual stock market”, the system may allow all securities to bein decimal format or dividable by 100, 1000 etc. This means that even aHimmelstein Option (no matter the security stated in the HimmelsteinOption) can be in decimal format or dividable by 100, 1000 etc.Therefore 1.00=1 total unit of the particular security. For instance ifthe security is stock, 1.00 would equal one share of stock for aparticular company.

Therefore, any fractional or decimal amount created from a bartertransaction can be worth for example, as little as 0.001 of a web barterdollar or 0.001 of a U.S. dollar. Specifically, if Individual “A” posteda barter order to barter away 100 shares of AOL stock at $85.00 pershare while desiring IBM shares at $180 per share, the system may, (ifan available match existed or if it was a direct barter with thewebsite) complete the barter order and provide 47.22 IBM shares at$180.00 per share. In this case, decimal amount of 0.22 is worth $39.60,if $180 is the current stock trading price per share. Alternatively, thesystem/barterer may allow, depending on the parameters set, barter 99.53shares of AOL stock for 47 shares of IBM stock.

The system can state in all barter agreements (i.e. terms andconditions) that all parties using the system may accumulate“fractional” or “decimal” amounts (i.e. all values less than (1.00)total unit of a particular security) from different parties and upon thesum equaling 1.00, allow the sum to become 1 unit of a security, such as1 share of stock. It should be noted that for Himmelstein Options, thesystem would be required to ensure the latest before dates and latestafter dates overlap, and the system would restate the before date andafter date to be the latest before date and earliest after date of allthe fractional or decimal amounts.

Preferably, the system maintains a history knowing which fractional ordecimal amount came from which security, such as stock, and can, whenbeneficial to the system and/or the barterer, reseparate a unit of aparticular security and rematch it back together with a portion of theoriginal security that had been part of the actually split. If for aHimmelstein Option, this may change the range of settlement dates.

Optimally, the system may allow barterers to barter fractional ordecimal amounts to other barterers and/or only with the system.

The system 100 may set the standard for minimum transaction and maximumtransaction based upon various concerns, including but not limited to,profitability and or irregularities, illegal trade practices and illegaltrade patterns.

The methodology of the “standard” Himmelstein Option is to allow two ormore parties to agree at a future date to barter, exchange or sell itemsor securities based on current agreed values, regardless of the tradingvalues of the securities at the time of settlement. In an alternativeembodiment, two or more parties may agree to exchange or barter at afuture date based on values on that future date. In this embodiment, thesettlement date or dates for each security may yet be a different date.

The system may unilaterally determine, or give each individual barterer,the ability to select a closing price for securities as trading days getlonger with extended after-hours trading. For example, if a security wasstock, the system may permit an individual to choose the traditional4:00 P.M. eastern/standard time closing price of the NYSE and the NASDAQmarket. On the other hand, the system or individual may choose the valuebased on after-hours trading. For example with the security, stock, orHimmelstein Option for stock, the system uses the closing price as thecurrent stock trading price as noted on 538, FIG. 5D and 506, FIG. 5A.

The system 100 can operate 24 hours a day or during standard markethours and/or during predefined after hours trading or a combinationthereof. The system 100 can further allow specific securities to betraded/bartered during specific time frames or allow a barterer tochoose the hours during which the barterer wants their barter orderposted (i.e. available for barter). Furthermore, the barterer or thesystem may allow the after hours trading market to operate totallyindependent from the standard market hours session. It may be aselectable parameter by either the barterer or system to determinewhether a barter order posted during standard hours will participate inthe after trading sessions and vice versa. Also, the barterer or systemcan determine if un-executed barter posted orders placed in either thestandard or after hours session carries over to the other session orgets canceled.

The system can ensure that barterers remain anonymous from one anotherand may utilize trustees, assignors or intermediaries to accomplishsuch.

The system can also allow any barter order to be canceled under specificterms. Further, if the order was not “locked” by a barterer or alreadyprocessed, the system can permit an individual who created the barterorder to cancel or modify same.

The system can also utilize the latest security features and encryptionmethods available.

The system may permit an individual to post a barter order with a rangeof quantities acceptable to the individual. For example, if theindividual posted IBM stock with a range of 5–10 shares, this means thatthe system can accept a barter order for any quantity between 5–10shares. This increases the likelihood of the barter transactionoccurring. As will be recognized by those skilled in the art, the feestructure charged by the system may be modified to handle thisembodiment.

The system 100 can also conduct or perform auctions wherein the system100 can further require: 1) a bidder to bid with a specific security; 2)a bidder to bid with a specific list of securities pre-approved; 3)require various conditions on a bidder such as requiring security to beheld by the system/designated agent; 4) pre-approve an individual to bidand 5) Minimum bid requirements may exist. The system 100 may use theembodiment that allows “offers” and allows communications betweenpotential barterers using the system's e-mail subsystem.

An agreement for a Himmelstein Option can state various additionalconditions such as requiring that the barterer in possession of or inownership of a Himmelstein Option must first offer or sell same to thesystem 100 and/or owner of the security prior to going to settlement.The system may allow a barterer creating Himmelstein Options the abilityto draft specific conditions to essentially create a custom contract tomeet the barterer's needs.

If the system 100 utilizes an intermediary or designated agent, thesystem 100 has the ability to fully communicate in such fashion toensure that all securities are transferred back and forth in a propercontrolled and secure fashion.

The system can authorize and permit an individual to access theebarterrealestate.com system and utilize an intermediary, or directlybarter for real estate.

Referring now to FIG. 8, the posted barter order database module 116stores posted barter orders 806, provides access routines 802 andperforms maintenance of the database 804. Among the access routines 802are add order record, delete order record and get order record.

The add order routine generates a database record that comprises thebarter order in addition to a unique transaction number, the time anddate stamp of the order and the account number. There are numerousdelete routines to remove posted barter orders based on differentcriteria. Some of the criteria are account number, transaction number,time and date, and barter item. Similarly, the get routine can returnrecords based on the same criteria.

The maintenance program 804 executes periodically, or optionally at therequest of and access routine 802, to remove and modify posted barterorders. For example, orders may be modified if a stock split occurs andthe barter order designates this stock or a Himmelstein Option for thestock. Orders can be removed for a number of reasons such as the barterorder expires, the barter account closes or the barter item is no longeravailable. For example, a barter order can be removed if stock tradingis halted and the barter order designates this stock.

Barter orders are modified by the maintenance program 804 under a numberof circumstances. A stock symbol designated in an order may have changedor the account number of the barter order is changed. Optionally,maintenance program 804 generates indexes and tables to facilitate quickaccess to the database records.

Optionally, if the system included a separate database of eachindividual's portfolio for all securities, the system can performsimilar access routines and maintenance routines as described above.

Other modifications, configurations and adaptions will be apparent tothose of ordinary skill in the art and are within the scope of thepresent invention.

1. A method for facilitating the bartering of publicly traded securitieson a computerized system, comprising: receiving on the computerizedsystem a first barter order from a user including: a first securityincluding a quantity thereof to be sold in a barter, a second securitydifferent from the first security to be purchased in said barterconcurrent with the sale of the first security, and a condition relatingto the value of said barter under which condition said barter may beexecuted; comparing on the computerized system said first barter orderto a list including multiple barter orders, each of said barter ordersincluding: a first security including a quantity thereof to be sold in abarter, a second security different from the first security to bepurchased in said barter concurrent with the sale of the first security,and a condition relating to the value of said barter under whichcondition said barter may be executed; determining from said list aplurality of selected barter orders which, if executed, will consummatesaid first barter order and one or more of said list of plurality ofselected barter orders; transmitting to said user, based on saiddetermining, an indication that said first barter order may be executed;communicating to said user a value indicator based upon a value ratiodetermined by a combination of the ratios x/y and a/b where: a=a salevalue of the first security to be sold, b=a market price of the firstsecurity to be sold, x=the purchase value of the second security to beacquired and y=a market price of the second security to be acquired; andreceiving from said user a request to execute said barter order.
 2. Themethod of claim 1 wherein said receiving further comprises receiving atime within which said barter may occur.
 3. The method of claim 1wherein each of said barter orders further includes a time within whichsaid barter order may occur.
 4. The method of claim 1 further comprisingexecuting a selected barter order by using a matching engine to linkmultiple barter orders.
 5. The method of claim 1 wherein said firstbarter order further includes a quantity of said second security.
 6. Themethod of claim 1 further comprising transmitting to multiple parties anindication that said first barter order may be executed.
 7. The methodof claim 1 further comprising displaying an available quantity of asecurity to be bartered.
 8. The method of claim 7 further comprisingdisplaying a remaining quantity of a security to be bartered, after aportion of said available amount is bartered.
 9. A computerized systemfor facilitating the bartering of publicly traded securities,comprising: a memory; and a processor disposed in communication withsaid memory, said processor configured to receive a first barter orderfrom a user including: a first security including a quantity thereof tobe sold in a barter, a second security different from said firstsecurity to be purchased in said barter concurrent with the sale of saidfirst security, and a condition relating to the value of said barterunder which condition said barter may be executed; compare said firstbarter order to a list including multiple barter orders, each of saidbarter orders including: a first security including a quantity thereofto be sold in a barter, a second security different from said firstsecurity to be purchased in said barter concurrent with the sale of saidfirst security, and a condition relating to the value of said barterunder which condition said barter may be executed; determine from saidlist a plurality of selected barter orders which, if executed, willconsummate said first barter order and one or more of said list ofplurality of selected barter orders; transmit to said user, based onsaid determining, an indication that said first barter order may beexecuted; communicate to said user a value indicator based upon a valueratio determined by a combination of the ratios x/y and a/b where: a=asale value of the first security to be sold, b=a market price of thefirst security to be sold, x=the purchase value of the second securityto be acquired and y=a market price of the second security to beacquired; and receive from said user a request to execute said barterorder.
 10. A computerized system for facilitating the bartering ofpublicly traded securities, comprising: means for receiving a firstbarter order from a user including: a first security including aquantity thereof to be sold in a barter, a second security differentfrom said first security to be purchased in said barter concurrent withthe sale of said first security, and a condition relating to the valueof said barter under which condition said barter may be executed; meansfor comparing said first barter order to a list including multiplebarter orders, each of said barter orders including: a first securityincluding a quantity thereof to be sold in a barter, a second securitydifferent from said first security to be purchased in said barterconcurrent with the sale of said first security, and a conditionrelating to the value of said barter under which condition said bartermay be executed; means for determining from said list a plurality ofselected barter orders which, if executed, will consummate said firstbarter order and one or more of said list of plurality of selectedbarter orders; means for transmitting to said user, based on saiddetermining, an indication that said first barter order may be executed;means for communicating to said user a value indicator based upon avalue ratio determined by a combination of the ratios x/y and a/b where:a=a sale value of the first security to be sold, b=a market price of thefirst security to be sold, x=the purchase value of the second securityto be acquired and y=a market price of the second security to beacquired; and means for receiving from said user a request to executesaid barter order.
 11. The system of claim 9 wherein said processor isfurther configured to execute a selected barter order by using amatching engine to link multiple barter orders.
 12. The system of claims9 or 10 wherein said first barter order further includes a quantity ofsaid second security and a time within which said barter may occur. 13.The system of claim 9 further comprising means for transmitting tomultiple parties an indication that said first barter order may beexecuted.
 14. The system of claim 9 wherein said processor is configuredto display an available quantity of a security to be bartered.
 15. Thesystem of 14 wherein said processor is configured to display a remainingquantity of a security to be bartered, after a portion of said availablequantity is bartered.
 16. A method for facilitating the bartering ofpublicly traded securities on a computerized system, comprising: storingon the computerized system a plurality of barter orders, each including:a first security including a quantity thereof to be sold in a barter, asecond security different from said for security to be purchased in saidbarter concurrent with the sale of said first security, and a conditionrelating to the value of said barter under which condition said bartermay be executed; identifying from said plurality of barter orders afirst barter order to be executed; determining from said plurality ofbarter orders at least two additional barter orders which, if executed,will consummate the first barter order and the at least two additionalbarter orders; developing a value indicator based upon a value ratiodetermined by a combination of the ratios x/y and a/b where: a=a salevalue of the first security to be sold, b=a market price of the firstsecurity to be sold, x=the purchase value of the second security to beacquired and y=a market price of the second security to be acquired; andinitiating a barter including the first barter order and the at leasttwo additional barter orders.
 17. The method of claim 16 wherein each ofthe plurality of barter orders further includes a time within which saidbarter may occur.
 18. The method of claim 16 further comprising using amatching engine to identify the at least two additional barter orders.19. The method of claim 16 wherein each of the plurality of barterorders further includes a quantity of the second security.
 20. Themethod of claim 16 further comprising displaying a remaining quantity ofa security to be bartered, after a portion of the available amount isbartered.
 21. A system for facilitating the bartering of publicly tradedsecurities, comprising: a processor; a memory connected to the processorstoring instructions to control the operation of the processor andfurther storing a plurality of barter orders, each including: a firstsecurity including a quantity thereof to be sold in a barter, a secondsecurity different from said first security to be purchased in saidbarter concurrent with the sale of said first security, and a conditionrelating to the value of said barter under which condition said bartermay be executed; the processor operative with the instructions in thememory to perform the steps of: identifying from said plurality ofbarter orders a first barter order to be executed; determining from saidplurality of barter orders at least two additional barter orders which,if executed, will consummate the first barter order and the at least twoadditional barter orders; developing a value indicator based upon avalue ratio determined by a combination of the ratios x/y and a/b where:a=a sale value of the first security to be sold, b=a market price of thefirst security to be sold, x=the purchase value of the second securityto be acquired and y=a market price of the second security to beacquired; and initiating a barter including the first barter order andthe at least two additional barter orders.
 22. The system of claim 21wherein each of the plurality of barter orders further includes a timewithin which said barter may occur.
 23. The system of claim 21 furthercomprising using a matching engine to identify the at least twoadditional barter orders.
 24. The system of claim 21 wherein each of theplurality of barter orders further includes a quantity of said secondsecurity.
 25. The system of claim 21 wherein the processor is furtherconfigured to display a remaining quantity of a security to be bartered,after a portion of the available amount is bartered.
 26. A system forfacilitating the bartering of publicly traded securities, comprising:means for storing on the computerized system a plurality of barterorders, each including: a first security including a quantity thereof tobe sold in a barter, a second security different from said firstsecurity to be purchased in said barter concurrent with the sale of saidfirst security, and a condition relating to the value of said barterunder which condition said barter may be executed; means for identifyingfrom said plurality of barter orders a first barter order to beexecuted; means for determining from said plurality of barter orders atleast two additional barter orders which, if executed, will consummatethe first barter order and the at least two additional barter orders;means for developing a value indicator based upon a value ratiodetermined by a combination of the ratios x/y and a/b where: a=a salevalue of the first security to be sold, b=a market price of the firstsecurity to be sold, x=the purchase value of the second security to beacquired and y=a market price of the second security to be acquired; andmeans for initiating a barter including the first barter order and theat least two additional barter orders.
 27. The system of claim 26wherein each of the plurality of barter orders further includes a timewithin which said barter may occur.
 28. The system of claim 26 whereinthe determining means includes a matching engine to identify the atleast two additional barter orders.
 29. The system of claim 26 whereineach of the plurality of barter orders further includes a quantity ofsaid second security.
 30. The system of claim 26 further comprisingdisplaying a remaining quantity of a security to be bartered, after aportion of said available amount is bartered.